Reviewing Angi (NASDAQ:ANGI) & BuzzFeed (NASDAQ:BZFD)

Angi (NASDAQ:ANGI) and BuzzFeed (NASDAQ:BZFD) are both small-cap communication services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Profitability

This table compares Angi and BuzzFeed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Angi	-22.35%	1.52%	0.84%
BuzzFeed	-35.83%	-113.86%	-34.00%

Insider & Institutional Ownership

12.8% of Angi shares are held by institutional investors. Comparatively, 37.6% of BuzzFeed shares are held by institutional investors. 3.3% of Angi shares are held by company insiders. Comparatively, 15.6% of BuzzFeed shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Angi has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, BuzzFeed has a beta of 4.02, meaning that its stock price is 302% more volatile than the S&P 500.

Earnings & Valuation

This table compares Angi and BuzzFeed”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Angi	$1.03 billion	0.27	$43.83 million	($5.72)	-1.21
BuzzFeed	$185.27 million	0.23	-$57.72 million	($1.56)	-0.33

Angi has higher revenue and earnings than BuzzFeed. Angi is trading at a lower price-to-earnings ratio than BuzzFeed, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Angi and BuzzFeed, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angi	2	6	2	0	2.00
BuzzFeed	1	1	0	0	1.50

Angi presently has a consensus target price of $9.57, indicating a potential upside of 38.32%. BuzzFeed has a consensus target price of $1.00, indicating a potential upside of 93.31%. Given BuzzFeed’s higher possible upside, analysts plainly believe BuzzFeed is more favorable than Angi.

Summary

Angi beats BuzzFeed on 8 of the 14 factors compared between the two stocks.

About Angi

Angi Inc. connects home service professionals with consumers in the United States and internationally. The company operates through three segments: Ads and Leads, Services, and International. It provides consumers with tools and resources to help them find local, pre-screened and customer-rated service professionals, matches consumers with independently established home services professionals. The company's Ads and Leads segment connects consumers with service professionals for local services through nationwide network of service professionals in various service categories; provides consumers with valuable tools, services, and content, including verified reviews, to help them research, shop, and hire for local services; and sells term-based website, mobile, and magazine advertising to certified service professionals, as well as services and tools, including quoting, invoicing, and payment services. This segment provides consumers access to online True Cost Guide, which provides project cost information for various project types, as well as a library of home services-related content. Its Services segment offers a pre-priced offering, pursuant to which consumers can request services through Angi and Handy branded platforms and pay for such services on the applicable platform directly; and provides professionals with access to a pool of consumers seeking service professionals and must validate their home services experience, as well as attest to holding the requisite license(s) and maintain an acceptable rating to remain on Services platforms. The company's International segment operates Travaux, MyBuilder, MyHammer, Werkspo, and Homestars home services marketplaces. The company was formerly known as ANGI Homeservices Inc. and changed its name to Angi Inc. in March 2021. The company was incorporated in 2017 and is headquartered in Denver, Colorado. Angi Inc. operates as a subsidiary of IAC Inc.

About BuzzFeed

BuzzFeed, Inc., a digital media company, distributes content across owned and operated, as well as third-party platforms. The company offers BuzzFeed, a go-to authority for entertainment, pop culture, and Internet with articles, lists, quizzes, videos, and original series; BuzzFeed News, a pocket friendly newsroom; Tasty, a platform for food content; HuffPost, media platform for news, politics, opinion, entertainment, features, and lifestyle content. It also provides display, programmatic, and video advertising on its owned and operated sites and applications. BuzzFeed, Inc. is headquartered in New York, New York.